Will Virginia Tech soon follow the two schools?
Marty Gordon
The life of the Atlantic Coast Conference (ACC) continues to take twist and turns. This week, Clemson joined Florida State in a lawsuit against the conference on its exit fees.
In its lawsuit, Clemson seeks confirmation of the plain language found in the Grant of Rights agreements and the related media agreements between the ACC and ESPN – that these agreements, when read together, plainly state that Clemson controls its media rights for games played if it is no longer a member of the ACC. Clemson also seeks a ruling regarding the unenforceability of the severe penalty the ACC is seeking to impose upon exiting members and confirmation that it does not owe a fiduciary duty to the conference as alleged by the ACC.
In the filing, Clemson said the ACC’s position regarding the Grant of Rights, the exit penalty, and obligations owed by members to the conference, as detailed in its public statements and other court filings, leaves Clemson with no choice but to move forward with this lawsuit.
Late last year, FSU also seemed to question the Grant of Rights and what could happen if it decided to leave the conference.
Earlier in the year, reports were leaked that as many as seven schools, including Virginia Tech, had held meetings to discuss an exit plan from the ACC. But no one admitted the discussions had taken place until FSU dropped the news of the first suit.
The schools say the current ACC-ESPN television deal puts the league at a disadvantage in comparison to others like the Southeastern and Big Ten conferences.
The Atlantic Coast Conference issued the following statement:
“The ACC remains confident that its agreements with all its members will be affirmed by the courts. Clemson, along with all ACC members, voluntarily signed and re-signed the 2013 and 2016 Grant of Rights, which is binding through 2036. In addition, Clemson agreed to the process and procedures for withdrawal. The Conference’s legal counsel will vigorously enforce the agreement and bylaws in the best interest of the ACC’s current and incoming members,” said the statement signed by ACC Board of Directors chair Jim Ryan and conference commissioner Jim Phillips.
Clemson says the ACC does not, in fact, control its broadcasting rights if the university leaves the conference as it, apparently and cannot enforce a $140 million exit fee if/when Clemson leaves the conference.
A new deal with the SEC shows each school will individual payouts of nearly $23 million more than in the past years. ACC schools will receive about $7 million to $10 million less annually than those in the SEC and Big Ten.
The question is whether those two other conferences would be willing to accept FSU and/or Clemson as they would see their percentage of the bank roll decrease.
Questions to Virginia Tech have gone unanswered on whether they are considering anything close to the two other schools.
Despite the lawsuit, the ACC points out Clemson has not given notice that it is exiting the ACC and remains a member of the conference. Florida State has not also made any announcement on a plan to leave the conference. But it could be evident and looming on the horizon.
